Taylor Capital Group Inc. of in Rosemont, Ill., and the family that owned most of its stock hope the recent sale of 1.5 million shares will boost liquidity and raise its profile with investors and analysts.
The $3.1 billion-asset company sold 1 million shares in a public offering that closed Aug. 17, netting almost $36 million. At the same time, the Taylor family, which held about 53% of the company before the sale, sold about 500,000 shares, netting about $18 million and reducing its stake to 43%.
Taylor Capital is the parent company of Cole Taylor Bank, which has 14 branches in the Chicago area.
Jeffrey W. Taylor, its chairman and chief executive officer, said he expects investors to be more attracted to the stock now that there is a bigger market for it.
The sale "will add to the valuation of the company over time: more shares outstanding, more market activity, less concentrated ownership," he said.
Analysts too are taking notice. This week Ryan Beck & Co. of Florham Park, N.J., initiated coverage with an "outperform" rating.
Mr. Taylor said the proceeds of the stock sale boosted Taylor's tangible capital and put it in a better position to make an acquisition if the opportunity arises. No deals are in the works, but the company would consider buying an investment management firm to help it build the wealth management side of its business, he said.
The offering was underwritten by Keefe, Bruyette & Woods Inc. of New York and was managed by Ryan Beck and by Stifel Nicolaus & Co. Inc. of St. Louis.
